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Sensing the spirits of economy & financial markets

Category Archives: Financial markets

A view on the new high minus hew lows on the S&P500
– When last year the S&P 500 was around the 1350 level, the NH-NL indicator was at a level of 100 – Now he S&P 500 is also at 1350, but the NH-NL is not even 50

A zoom into the S&P500 stocks at 52-wk highs minus lows. I did the zoom as it struck me how there was a distinctive point where the S&P500 went up and the high minus lows went down. It suggest that a break of the steep uptrend of S&P500 is coming. Watch the mean level for the new high minus low indicator.
– if it holds, is a small correction and a “buy on the dip” -> this would be the best situation for the longer term
– if it breaks, and S&P breaks below 1300, it is a crack in the confidence of the latest uptrend

The % of S&P 500 stocks above the 200-day moving average is back above the mean level. It was a steep rise, but there is more room to the upside. With the orange boxes you can see a comparison with the summer period of 2010. Comparing patterns with historical ones however is very tricky, as there circumstances always are different.
But, fact is that too strong uptrend has to be followed by a period of pullbacks and/or channels. So, keep this one on your radar for the coming weeks/months

“Our [The US] country is almost $15TRN. in debt. The debate is about cutting just $1.5 TRN. over 10 years. This debate should be front and center. It should be dominating our airwaves. The media has basically decided to ignore the debate, which must be settled by November 23.”

Given the turbulance on the financial markets of the previous agreement in july, we can not ignore this in the coming weeks !